Corruption at Heart of Military Payday Loan Amendment Objection?
In Kentucky, Rep. Geoff Davis objects to a national proposal that would limit interest rates for soldiers that acquire regular or no faxing payday loans. The question on the minds of many consumer groups, therefore, is:
Why?
The Pentagon has accused payday lenders of surrounding its military posts with the intention of exploiting troops.
Davis' chief of staff claims Davis opposes the amendment because it would impose a 36 percent cap only on payday cash loan lenders, but not other types of businesses that target service members.
The proposal is an amendment to the 2007 defense authorization bill. It's currently being debated in Congress, but the following tidbit calls Davis ' motives into question:
- He received more than $11,000 from CNG Financial, which owns national payday lender Check 'n' Go, in campain contributions.
That fact was reported by the Center for Responsive Politics and we'll have more on this story as it develops. But could a payday loan company connection be getting in the way of Davis doing what he actually think is right?